Southern District of Texas
Press releases recorded for this federal judicial district.
Accused Real Estate Fraudster Extradited from SpainRead the Press Release
HOUSTON - Robert Alan Berry, 60, is set to appear in federal court following his extradition from Spain on charges of wire fraud and money laundering in relation to an international real estate scam, announced U.S. Attorney Kenneth Magidson and Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI). Berry, a U.S. citizen formerly in Calistoga, Calif., is charged with two counts of wire fraud and two counts of money laundering.
The scam Berry allegedly executed affected residents of Houston as well as people in other cities in the U.S. and other countries around the world.
The four-count indictment charging Berry was returned Feb. 26, 2014. It alleges that in 1998, Berry co-founded Pelican Eyes Piedras y Olas S.A. (PEPO) as a hotel and resort in San Juan del Sur, Nicaragua. The resort grew over the next 10 years, but its financial health declined during that time, according to the allegations. Investors had provided approximately $31 million to PEPO and Berry built more than 60 units through two phases of development. However, the indictment alleges Berry ultimately sold more units to investors than he could afford to build.
In an attempt to keep the resort going, Berry allegedly turned to fraud. The charges indicate he lied to investors and lenders in order to obtain millions of dollars in investment funds and loans. Berry also would sell the same unit to more than one buyer, use already sold units as collateral for loans or sell units that he had already pledged as collateral, according to the allegations.
In October 2009, PEPO suffered a financial collapse, at which time Berry fled Nicaragua, eventually settling in Spain.
With the assistance of Interpol and Spanish authorities, Berry was arrested Oct. 24, 2014. He was eventually transported to the United States and arrived in Houston Feb. 6, 2015. He is set to make his initial appearance on the charges at 2:00 p.m. today before U.S. Magistrate Judge Stephen Smith.
If convicted, he faces up to 20 years on each count of wire fraud as well as a maximum of 10 years for each of the money laundering charges. Both convictions also carry a possible $250,000 fine.
The charges are the result of an investigation by IRS-CI. Assistant U.S. Attorney Robert S. Johnson is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Former Executive Pleads Guilty to Defrauding Shipping CompanyRead the Press Release
HOUSTON – Kathleen Creel, a former employee of Wilhelmsen Ships Service Inc., has pleaded guilty to 10 counts of wire fraud in connection with defrauding her company, announced United States Attorney Kenneth Magidson.
As part of her guilty plea, Creel, 43, admitted that from June 2003 through August 2009, she was employed by Wilhelmsen and a predecessor company at its Pasadena headquarters as the company’s customs and tax manager. In this role, Creel had access to sensitive financial information, including billing records and bank account information for Wilhelmsen vendors. Creel also admitted she had access to Wilhelmsen bank accounts and the ability to cause Wilhelmsen to make payments to vendors.
Creel admitted that from at least June 2003 through approximately August 2009, she defrauded Wilhelmsen by embezzling money from the company’s bank accounts. Creel used Wilhelmsen’s accounting system to cause a series of wire transfers from the company’s bank accounts into her own. Specifically, Creel carried out the scheme by creating false invoices from two Wilhelmsen vendors. Creel entered the false invoices into Wilhelmsen’s accounting system and either approved or caused them to be approved for payment. These actions then caused interstate wire transfers from Wilhelmsen’s New York based bank account into Creel’s bank account.
U.S. District Judge Grey Miller, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, she faces up to 20 years in federal prison and a $250,000 maximum fine or twice the pecuniary gain or loss on each count, along with forfeiture allegations of more than $4 million.
She was permitted to remain on bond pending that hearing.
The case is being investigated by the FBI and prosecuted by Assistant U.S. Attorney John Pearson.
Texas National Guard Recruiter and Assistant Convicted in Bribery and Fraud SchemeRead the Press Release
HOUSTON – An Army National Guard recruiter and recruiting assistant were convicted today for their roles in a bribery and fraud scheme, announced U.S. Attorney Kenneth Magidson and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
Jammie T. Martin, 37, and Michelle H. Davis, 34, both of Katy, were convicted today of conspiracy, bribery, wire fraud and aggravated identity theft. The defendants were indicted on Aug. 7, 2013, and will be sentenced on May 7, 2015, by U.S. District Judge David Hittner.
From February 2009 through April 2011, Martin served as an Army National Guard recruiter. Davis served as a recruiting assistant with the Guard Recruiting Assistance Program (G-RAP), which was a recruiting program that offered monetary incentives to soldiers of the Army National Guard who referred others to join the National Guard. Both defendants worked out of a Texas National Guard Armory known as the Westheimer Armory.
According to evidence presented at trial, Martin - who, as a recruiter, was ineligible for the G-RAP incentives - provided the personal identifying information of potential soldiers to Davis and at least three other National Guard soldiers. Davis and the others then falsely claimed they were responsible for referring the potential soldiers to join the military and fraudulently received referral bonus payments through the G-RAP program. Davis and the others paid approximately half of each fraudulent bonus payment to Martin as a kickback.
To date, this investigation has led to the conviction of 26 individuals, including Martin and Davis.
This case is being investigated by the San Antonio Fraud Resident Agency of the United States Army Criminal Investigation Command’s Major Procurement Fraud Unit and prosecuted by Assistant U.S. Attorney John P. Pearson and Trial Attorneys Sean F. Mulryne and Mark J. Cipolletti of the Criminal Division’s Public Integrity Section.
7 Charged in Pasadena Bank RobberyRead the Press Release
HOUSTON – A federal grand jury has returned a two-count indictment against seven local men in connection with the armed robbery of the Shared Resources Credit Union at 2102 SH 225 in Pasadena on July 28, 2014, announced U.S. Attorney Kenneth Magidson.
Raynard Gray, 31, Leroy Carlton Richardson, 34, Howard Bernard Glaze, 22, Christopher Braziel, 27, and Kwhun Dominique Johnson, 22, were taken into custody last week by local authorities and are expected to make an initial appearance before a U.S. magistrate judge in Houston in the near future. Sonny Floyd Pervis, 25, has been in custody in Louisiana on unrelated charges and is expected to be transferred to Houston to answer these charges in the near future. The seventh defendant - Keith Derwin McGee, 24 - is currently a fugitive and a warrant remains outstanding for his arrest.
Crime Stoppers is offering up to $5,000 for information leading to the charging and arrest of McGee. If you have information about him, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the Houston office of the FBI at 713-693-5000.
Anyone with information about his whereabouts is asked to contact the FBI at 713-693-5000.
All seven men are charged with aiding and abetting bank robbery, which carries a maximum 25-year-term of federal imprisonment and a possible $250,000 maximum fine, upon conviction.
Gray, Pervis, Richardson, Glaze, McGee and Braziel were also charged with aiding and abetting the use and carrying of a firearm during and in relation to a crime of violence. If convicted, they will each face a minimum of seven years, which must be served consecutively to any other sentence imposed for the underlying crime.
This charges are the result of a joint investigation by the Pasadena Police Department and the FBI Violent Crimes Task Force, which includes such agencies as the Harris County Sheriff’s Office and Houston Police Department, with assistance from the Montgomery County and Fort Bend County Sheriff’s Offices. Assistant U.S. Attorney Richard D. Hanes is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.McAllen Area Ambulance Company Owner Pleads Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ Frank Gonzalez, 32, has pleaded guilty to conspiracy to commit health care fraud and aggravated identity theft, announced U.S. Attorney Kenneth Magidson and Texas Attorney General Ken Paxton. Gonzalez, of Mission, is the owner of a McAllen area ambulance transportation company who was charged in a federal indictment for his role in a scheme to defraud Medicare and Texas Medicaid through fraudulent billings.
Gonzalez, the owner of River Valley Transport (dba Med-Alert EMS), was charged in October 2013. As part of his plea today, he admitted he submitted or caused others to submit claims with Medicare and Texas Medicaid for reimbursement of ambulance transportation services that were not provided. Specifically, he billed for transporting beneficiaries to and from dialysis clinics on dates when the beneficiaries did not receive dialysis treatments or even go to the dialysis clinics.
Altogether, Gonzalez was responsible for the submission of $601,000 in fraudulent claims to Medicare and Texas Medicaid, resulting in the payment of $317,795.34 to Gonzalez.
Gonzalez admitted to creating or causing the creation of falsified documents which were intended to make the fraudulent claims submitted to Medicare and Texas Medicaid appear legitimate. The falsified documents were completed to make it appear that a particular emergency medical technician had been involved in the transportation of a patient when in fact they had not. Gonzalez also admitted to forging or caused others to forge the signatures of the emergency medical technicians on documents without their authorization or permission.
Gonzalez admitted to the use of a private vehicle, specifically a mini-van, to transport patients. Gonzalez then billed or caused others to bill those transports as ambulance transportation services and also billed at the higher-paying level of ambulance transportation services known as advanced life support.
To further execute his scheme, Gonzalez used or caused others to use the Medicare number of a patient to submit false and fraudulent billings to Medicare and Texas Medicaid. As part of the plea, Gonzalez will pay $317,795.34 in restitution to Medicare and Texas Medicaid.
U.S. District Judge Ricardo Hinojosa, who accepted the plea today, has set sentencing for May 8, 2015. For the conspiracy to commit health care fraud, he faces a maximum of 10 years in federal prison and a possible $250,000 fine. In addition, he will receive a mandatory two-year prison term for the identity theft which must be served consecutively to the other sentence imposed. Gonzalez was permitted to remain on bond pending that hearing.
The investigation was conducted by the U.S. Department of Health and Human Services‐Office of Inspector General and the Texas Attorney General’s Medicaid Fraud Control Unit. Assistant U.S. Attorney Michael Day is prosecuting the case.
Husband and Wife Convicted in Multi-Million Dollar Healthcare Fraud SchemeRead the Press Release
HOUSTON – William Owuama, 55, and Marla Owuama, 47, of Houston, have entered guilty pleas to charges related to a healthcare fraud scheme in which they billed Medicare for more than $9 million, announced U.S. Attorney Kenneth Magidson.
William Owuama was the owner of Wilmar Healthcare Systems and his wife was a registered nurse who helped run the clinic. William Owuama violated the anti-kickback statute by paying Medicare beneficiaries for visiting the clinic. He also billed Medicare and Medicaid for vestibular testing that was never performed and billed under the provider number of a local doctor while that doctor was incarcerated on unrelated charges. From January 2006 through October 2009, Medicare and Medicaid paid Wilmar Owuama more than $4 million based on the fraudulent claims.William Owuama pleaded guilty to conspiracy to commit healthcare fraud and violate the anti-kickback statute. He faces up to five years in prison and a possible $250,000 fine. Marla Owuama was convicted of misprision of a felony for helping to conceal the crime and faces up to three years in prison and the same fine. The couple has agreed to pay restitution to Medicare and Medicaid as a part of their plea agreements.
They are set for sentencing April 21, 2015, before U.S. District Judge Nancy F. Atlas.
The investigation leading to the charges in this case was conducted by the U.S. Department of Health and Human Services – Office of Inspector General, FBI and the Texas Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorneys Andrew Leuchtmann, John Pearson and Adrienne Frazior prosecuted the case.
Houston Rapper Heads to Prison for Sex Trafficking of A MinorRead the Press Release
HOUSTON – Jeremy Jacobi Scott aka “J Moe,” 30, of Houston, has been ordered to prison for 10 years following his conviction of conspiracy to commit sex trafficking of a minor, announced U.S. Attorney Kenneth Magidson. Scott pleaded guilty June 23, 2014.
Today, U.S. District Judge Kenneth M. Hoyt took into consideration the facts and circumstances surrounding the exploitation of the minor victim and handed Scott a sentence of 120 months in federal prison. Additional information was also presented today, including Scott’s criminal history which includes prior acts of violence against women and other offenses. In handing down the sentence, Judge Hoyt stated that the crime Scott committed was a very serious offense and that it was time for him to take responsibility for his life, move forward and find a way to support his children upon his release from prison. Judge Hoyt told Scott that his life was no longer about his failed dreams but rather about helping his children fulfill their own dreams. Scott was further ordered to serve five years of supervised release following completion of his prison term, during which time he will have to comply to comply with numerous requirements designed to restrict his access to children. He will also be ordered to register as a sex offender.
At the time of his plea, Scott admitted that beginning in February 2011, he attempted to gain the trust of a 14-year-old female. He had reached out to her via MySpace and began picking her up from her residence and her school and driving her around town and to a music studio where Scott recorded rap songs. He also gave her marijuana.
On one occasion, the female had asked Scott to take her home. He refused and took her cellphone. Soon after, he taught her how to prostitute, photographed her and used those photos to place advertisements for her services on a website known for the advertisement of prostitution services. During that time, the victim witnessed Scott beating another girl recruited to work for him. Scott kept all the monies the victim earned.
She was rescued after approximately a month following an undercover operation.
The lyrics of some of Scott’s songs glorify prostitution and “pimping” and were consistent with terms used by persons who exploit women and minors for commercial sex. He has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Houston FBI Innocence Lost Task Force, which includes such agencies as the Houston Police Department. The case is being prosecuted by Assistant United States Attorney Sherri L. Zack.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Local Non-Profit Businessman Charged in Alleged Fraud SchemeRead the Press Release
HOUSTON - Jesse Dunn, 56, of Houston, is set to appear in federal court following the return of an eight-count indictment alleging a fraud scheme in connection with a major disaster, announced U.S. Attorney Kenneth Magidson.
The indictment was returned Wednesday, Jan. 28, 2015. Dunn surrendered to federal authorities this morning and is set to make his initial appearance today before U.S. Magistrate Judge George Hanks at 10:00 a.m.
The eight-count indictment alleges one count of participating in a fraud scheme in connection with a major disaster, one count of making a false statement and six counts of false representations in connection with a major disaster.
Dunn was the president of Aldine Community Care Center Inc. (ACCC), a registered Texas non-profit corporation created on April 29, 2004, according to the indictment. He also served as the president or director of several other Texas non-profit corporations, such as Paraclete Church Ministries Inc.
According to the allegations, Dunn falsified numerous documents to the Small Business Administration (SBA) in order to receive disaster relief funds on behalf of ACCC from approximately September 2008 to December 2010.
Hurricane Ike made landfall on the Texas Gulf Coast on Sept. 13, 2008, at which time former President George W. Bush declared the counties in and around Houston a major disaster area under section 401 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act. Shortly thereafter, Dunn allegedly applied for a loan on two of his properties for disaster relief funds.
The indictment alleges Dunn submitted false invoices to the SBA which resulted in the disbursement of $1,300,800 that was to be used for the repair or replacement of real estate, inventory, supplies, machinery and equipment damaged during the declared disaster. However, Dunn allegedly used a significant portion of the proceeds for his own personal use.
He faces up to 30 years in federal prison and a possible $250,000 fine for each of the false representations charges and the fraud scheme in connection with a major disaster. If convicted of the false statement charge, he will also face up to five years in prison and another $250,000 fine.
The investigation leading up to the arrest was conducted by the SBA and the FBI. Assistant U.S. Attorneys Suzanne Elmilady and Andrew Leuchtmann are prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Leader of Hostage Taking Conspiracy Gets Life in Federal PrisonRead the Press Release
HOUSTON – The leader and six others involved in a hostage taking conspiracy that left victims in deplorable conditions have all been ordered to federal prison as a result of their criminal actions, announced United States Attorney Kenneth Magidson
A Houston federal jury convicted Mexican national Samuel Castro-Flores, aka “Chame” or “Chamuco,” 42, March 6, 2014, on 18 counts to include conspiracy to commit hostage taking, hostage taking and other charges involving smuggling aliens and firearms. The jury found him guilty of one count of conspiracy to commit hostage taking, five counts of hostage taking, one count of conspiracy to harbor illegal aliens, five counts of harboring illegal aliens, one count of being an alien illegally present in the U.S., one count of conspiracy to transport illegal aliens, two counts of transportation of illegal aliens, as well as using and carrying a firearm in furtherance of a crime and brandishing that firearm. The verdict was returned following a two-week trial and only an hour of deliberation. At the time he committed these crimes Castro-Flores was living illegally in the United States and was also on supervised release for a 2009 federal alien smuggling conviction.
Today, U.S. District Judge Gray Miller, who presided over the trial, sentenced Castro-Flores, along with six others also convicted in relation to the conspiracy. Castro-Flores was ordered to serve life in prison plus an additional seven years for brandishing a firearm during the commission of the hostage taking offenses. Judge Miller also revoked his supervised release from the 2009 case and ordered he serve an additional two years in prison for that offense. Six other defendants were also sentenced today. Virgilio De La Torre-Santana was ordered to serve 360 months, while Joshua Andrew Carbajal received a 240-month-term of imprisonment. Jobs Solis-Benito, Emmanuel Rivera-Abarca, Adauto Aguilar-Lara and Marco Garcia-Perez were each sentenced to respective terms of 97, 38, 36 and 31 months in federal prison. With the exception of Carbajal, who is from Alice, the remaining defendants are illegal aliens and expected to face deportation proceedings following release from prison.
At the hearing today, the court also heard from a female victim who was sexually abused by members of the conspiracy while being held hostage by Castro-Flores and his co-defendants. In handing down the sentences, Judge Miller noted the deplorable conditions to which the alien hostages were subjected as well as the large scope of the hostage taking and alien smuggling organization led by Castro-Flores.
Judge Miller also ordered all defendants today to pay restitution in the amount of $38,130, which represented the amount of money the group extorted from the families and friends of the alien hostages.
The charges in the case stem from an investigation that began in mid-August 2012. Two illegal aliens had been smuggled into the country and their family members began to receive extortion calls demanding money for their release.
On Sept. 7, 2012, agents executed a search warrant at a residence on Amblewood Drive in Houston and encountered 26 illegal aliens, at least two of whom were juveniles, being held hostage inside the residence. According to the victim aliens, upon arrival in Houston they were forced to undress and informed they had been “sold” and would not be released until family members paid for their release. Victims reported they were held in their underwear, in locked rooms with boarded up windows and in deplorable conditions. The victims also indicated they were guarded by men constantly armed with a handgun. Some victims said they were threatened with harm or death if payment was not received.
The evidence at trial showed Castro-Flores was the leader of the organization which held these aliens hostage and extorted their families for thousands of dollars before their release. The evidence also demonstrated Castro-Flores took extensive steps to avoid being detected by law enforcement. For example, he asked witnesses to help him present a false story that he was simply a repairman who happened to be at the Amblewood residence on one occasion to fix the air-conditioning.
An air-conditioning repair company owner in Houston reported that he once employed Castro-Flores as a helper in his business but fired him after learning he was involved in smuggling aliens. He also testified Castro-Flores later tried to use him to present a false impression to law enforcement that he was only involved in the air-conditioning business.
Prior to committing the offenses in this case, Castro-Flores was convicted of conspiracy to harbor aliens in the Southern District of Texas in July 2009 and subsequently deported in January 2011. He re-entered the United States after his deportation and was arrested in this case on Dec. 5, 2012, in Houston. Before his trial, Castro-Flores pleaded guilty to illegal re-entry, one of the charges from the indictment in the current case.The investigation leading to the charges in this case was conducted by Homeland Security Investigations in Houston, Washington, D.C., and Virginia along with the Houston Police Department. Assistant U.S. Attorneys Casey N. MacDonald and Arthur R. Jones prosecuted the case.
Houston Man Sentenced for Conspiring to Steal from Home Equity Lines of Credit of Unsuspecting VictimsRead the Press Release
HOUSTON – Obinna Gregory Okoro, 25, of Houston, has been ordered to prison after conspiring to use personal identifiers of victims to create fake bank accounts online, link those accounts to existing bank accounts and drain them of the funds, announced United States Attorney Kenneth Magidson. Okoro pleaded guilty to one count of conspiring to commit bank fraud, one count of engaging in computer fraud and one count of aggravated identity theft Sept. 3, 2014.
Today, U.S. District Judge Nancy Atlas, who had accepted the plea ordered Okoro to serve 33 months for the conspiracy and computer fraud charges and a consecutive 24 months for the aggravated identity theft to be served consecutively for a total 57- month-term of imprisonment. He will also be required to serve three years of supervised release following completion of that prison term. Judge Atlas also ordered restitution in the amount of $455,686.39.
According to his plea agreement, in September 2013, Okoro and his co-conspirators stole $537,681 from PNC Bank N.A. Okoro and others created a fraudulent account at PNC Bank using the a victim’s personal identifiers, which they linked to the victim’s home equity line of credit (HELOC) account. They also posed as the victim to call PNC Bank in order to learn more about the accounts, order checks and increase the daily withdrawal limit. They accessed these accounts online to fraudulently transfer a total of $537,681 from the victim’s HELOC account to the account they created. From there, they withdrew and transferred much of this money.
Okoro’s plea agreement also indicates that in April 2014, Okoro and his co-conspirators stole money from a bank account jointly held by two victims. Okoro and co-conspirators used the victims’ personal identifiers to fraudulently open a bank account online at Commerce Bank N.A., which was linked to a legitimate account owned by the victims.
Posing as one of the victims, they called Commerce Bank. When the bank asked for personal identifiers to authenticate their identity, Okoro and his co-conspirators were able to provide the victims’ name, date of birth, Social Security number, direct deposit account number and mother’s maiden name. They then transferred money from the victims’ legitimate account to the fraudulent account that they created and withdrew this money. Altogether, Okoro and his co-conspirators fraudulently transferred about $25,027 from the victims’ account to the fraudulent Commerce Bank account they created. From there, Okoro and his co-conspirators withdrew (or spent in debit card transactions) approximately $21,463.04.Okoro has admitted he used some of the monies to buy an $85,000 BMW 650i. A Rolex watch appraised to have a fair market value of $47,800, a bracelet and a medallion were also seized at time of his arrest.
Okoro is and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the FBI. Assistant U.S. Attorney Michael Chu prosecuted the case.
Houston Man Convicted in Galleria Mall Bank RobberyRead the Press Release
HOUSTON - Emiliano Trevino, 25, has entered a guilty plea to one count of bank robbery, announced U.S. Attorney Kenneth Magidson.
On Oct. 16, 2014, Trevino robbed the BBVA Compass Bank at gunpoint located inside the Houston Galleria Mall on Westheimer Road in Houston. The robbery occurred at approximately 12:45 p.m. during normal shopping hours.
Trevino entered the bank and asked for a withdrawal of 20s, 50s and 100s. As he demanded the money, he pulled out a black revolver from his jacket, displaying the gun to the teller.
U.S. District Judge David Hittner accepted the guilty plea today and has sentencing for April 24, 2015. At that time, Trevino faces up to 25 years in prison and a possible $250,000 maximum fine.
Previously released on bond, Trevino was taken into custody following the sentencing today where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by the FBI Violent Crimes Task Force with assistance of the Houston Police Department. Assistant United States Attorney Julie Searle is prosecuting.
Two Mexican Nationals Get Significant Sentences for Illegal Re-EntryRead the Press Release
LAREDO, Texas – Carlos Aragon-Carrillo, 30, and Juan Garcia-Rodriguez, 49, both of Mexico, have been handed lengthy sentences following their convictions of illegal re-entry after deportation or removal in separate cases, announced United States Attorney Kenneth Magidson. Aragon-Carrillo and Garcia-Rodriguez both entered guilty pleas May 13, 2014.
Today, U.S. District Judge Janis Graham Jack sentenced Aragon-Carrillo to 77 months in federal prison. In handing down the sentence, the court noted Aragon-Carrillo’s extensive criminal history. As he was on supervised release for another illegal re-entry conviction when committing this offense, the court also revoked that term and ordered he serve an additional 21 months to be served consecutively for a total of 98 month of imprisonment.
Judge Jack also sentenced Garcia-Rodriguez today, ordering him to serve 120 months in federal prison.
Following completion of their prison terms, both will once again be expected to face deportation proceedings.
On March 8, 2014, U.S. Border Patrol (BP) agents discovered Aragon-Carrillo in Laredo and soon determined he was a Mexican national and illegally present in the United States. Aragon-Carrillo has a long and extensive criminal history including four separate felony convictions involving firearm and fleeing from law enforcement. He had been deported to Mexico in 2011 following his release from prison for the prior illegal re-entry conviction.
In a separate, but similar case, Garcia-Rodriguez was arrested by BP after being found in Laredo on Feb. 16, 2014. Agents learned he had prior felony convictions for second degree murder, assault and assault on a peace officer and had been deported just five days prior to being found by law enforcement in the U.S.
HSI and BP investigated the cases. Assistant U.S. Attorney (AUSA) Sonah Lee prosecuted the case against Aragon-Carrillo, while AUSA Christopher A. dos Santos handed the case against Garcia-Rodriguez.
Repeat Alien Trafficker Sentenced to Prison After Failed EscapeRead the Press Release
LAREDO, Texas – Daniel Mata, 28, of Rio Bravo, has been ordered to federal prison for transporting illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. Mata pleaded guilty Feb. 28, 2014.
Today, U.S. Senior District Judge George Kazen ordered he serve a total of 60 months in federal prison to be immediately followed by three years of supervised release. At the hearing, the court noted his previous convictions for similar conduct and admonished Mata, stating that “you’ve packed a lot crime into a short amount of time…you’re not a career criminal, but a career and a half criminal!” Mata apologized to BP agents and their families.
On Feb. 28, 2014, U.S. Border Patrol (BP) agents learned of illegal aliens that had entered the United States via a resident’s backyard in Rio Bravo. Agents responded and noticed a suspicious Grand Marquis vehicle in the area and followed it to a local convenience store.
Mata was the driver of the vehicle. He then exited the car and entered the store. Agents continued surveillance of the vehicle and determined the four passengers were Mexican nationals that were illegally within the United States. The aliens admitted paying $5,000 as a transfer fee and identified Mata as their driver.
Agents entered the store in search of Mata. Inside, Mata engaged in a physical confrontation with law enforcement and fled the scene. He ran outside of the store and was pursued by BP agents on foot and through air surveillance by the National Guard Air Unit. After an exhaustive pursuit, he was eventually apprehended.
He will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges were the result of an investigation by BP, the National Guard Air Unit, Homeland Security Investigations and the FBI. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
McAllen Man Admits to Attempting to Use Government Vehicle to Deliver CocaineRead the Press Release
McALLEN, Texas ‐ Mario Guadalupe Saenz, 27, of McAllen, has pleaded guilty to attempting to possess with intent to distribute approximately nine kilograms of cocaine, announced U.S. Attorney Kenneth Magidson.
On Oct. 9, 2014, Saenz was observed driving a white Dodge Ram with U.S. government license plates registered to the U.S. Department of Agriculture (USDA). Saenz drove the USDA-owned vehicle through an opening in the border fence and retrieved a bag from the brush near the Rio Grande River in Hidalgo County. He used the government vehicle to transport the bag to a business parking lot in McAllen.
He was subsequently arrested as investigators discovered the bag contained approximately 9.39 kilograms of a suspected controlled substance, 1.1 kilograms of which tested positive for the properties of cocaine.
U.S. District Judge Randy Crane, who accepted the guilty plea, has set sentencing for April 9, 2015. At that time, he faces a minimum of 10 years and up to life in federal prison.
Saenz will remain in custody pending that hearing.
The investigation leading to the charges was conducted by Homeland Security Investigations, USDA-OIG and the McAllen Police Department. Assistant U.S. Attorney Kristen Rees is prosecuting the case.
Laredo Resident Sentenced for Distributing Controlled Substances Near SchoolRead the Press Release
LAREDO, Texas - Romeo Serna Sr., 52, has been ordered to federal prison following his convictions on multiple conspiracies related to the distribution of narcotics within 1,000 feet of school, announced U.S. Attorney Kenneth Magidson. Serna pleaded guilty June 17, 2013, to multiple conspiracies to possess with intent to distribute cocaine, crack cocaine and marijuana as well as multiple counts of possession with intent to distribute controlled substances within 1,000 feet of school.
Today, U.S. District Judge Marina Garcia-Marmolejo handed the Laredo resident a total sentence of 84 months in federal prison to be immediately followed by six years of supervised release. In upwardly departing as she imposed the sentence, the court noted Serna’s under-represented criminal history, his aggravating role in the conspiracy and the proximity of his house to the school, which was less than 1000 yards away. The court also ordered Serna’s residence be forfeited to the government having found it was used to further the criminal activity.
The government presented testimony from the case agent and the undercover agent who testified they received information in March 2012 that drugs were being sold from the Serna residence on Bartlett Avenue, which was located just a block away from a public middle school and a public high school. Subsequent to receiving the information, they conducted surveillance on the residence where they observed several individuals engage in what appeared to be drug transactions.
An undercover agent then conducted several controlled buys of cocaine, cocaine base and marijuana from Serna Sr., and his sons - Romeo Serna Jr. and Randy Serna - at their residence throughout the course of several months.
On March 7, 2013, after attempting another controlled buy of cocaine base (crack cocaine), law enforcement then arrested Serna Sr. and his two sons. A search warrant was also executed, resulting in the discovery of marijuana on the kitchen counter, in the attic and in the living room as well as cocaine in the kitchen along with various drug paraphernalia associated with drug trafficking. Serna Sr. and Serna Jr. admitted they had been selling marijuana and cocaine out of their residence for several years.
Serna Jr. and Randy Serna pleaded guilty in the case and have also been ordered to prison.
Serna Sr. has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The Drug Enforcement Administration investigated with assistance from the Laredo Independent School District Police Department. Assistant U.S. Attorneys Sonah Lee and Mary Ellen Smyth prosecuted the case.
Inmate Convicted of Threatening A Federal JudgeRead the Press Release
HOUSTON - George Yarbrough, 42, a former resident of Houston, has entered a guilty plea to a one-count criminal indictment charging him with mailing a threatening communication, announced U.S. Attorney Kenneth Magidson.
As part of his plea, Yarbrough has admitted that on or about Sept. 26, 2014, he knowingly mailed a communication threatening to kill a specific federal judge in Houston. The communication was received at the Bob Casey U.S. Courthouse at 515 Rusk St. in Houston and had a return address implicating Yarbrough, who was an inmate serving a sentence within the Texas Department of Criminal Justice (TDCJ).
In the letter, Yarbrough warned the judge that he intended to kill him as soon as he got out of TDCJ. Yarbrough claimed the judge had ruined Yarbrough’s life and that he had lost of his loved ones. Yarbrough repeated the threat throughout the letter with a final note that “…I’m coming to get you and your family!”
Yarbrough was interviewed on two occasions and never denied sending the letter.
Yarbrough indicated the basis for the threat was because the judge had had dismissed a civil rights lawsuit Yarbrough filed against TDCJ personnel several years earlier.
U.S. District Judge Nancy Atlas, who accepted the guilty plea, has set sentencing for April 15, 2015. At that time, Yarbrough faces up to 10 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
The FBI, U.S. Marshals Service and the TDCJ-Office of Inspector General investigated the case which is being prosecuted by Assistant U.S. Attorney Mel Pechacek.
Federal Jury Convicts Laredoan in Alien Harboring ConspiracyRead the Press Release
LAREDO, Texas – A Jury sitting in Laredo has convicted Gustavo Villegas, 28, of Laredo, tonight of all four counts related to harboring 21 illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. The jury returned its verdict less than an hour ago following a two-day trial and 90 minutes of deliberation.
The jury heard that Villegas took part in a conspiracy to smuggle and harbor illegal aliens in Laredo in July 2014. Villegas transported illegal aliens to a local Burger King restaurant as well as both the American Best Value Inn and Gateway Inn hotels in Laredo. Homeland Security Investigations (HSI) ultimately discovered a total of 21 illegal aliens at the hotels. Through ongoing investigation, agents tracked vehicles to Villegas and others and he was arrested on Oct. 23, 2014.
When HSI agents learned of a smuggling event which was to occur at an HEB parking lot in Laredo, they began conducting surveillance and witnessed a number of persons exit a Ford Focus car and get into a Dodge Durango truck Villegas was driving. Agents followed the vehicle to a Burger King where four of the people got out of the Dodge truck and boarded another vehicle bound for America’s Best Value hotel in Laredo. Several people got out and entered a room at the hotel. Agents witnessed similar activity leading them to the Gateway Inn hotel where more individuals were seen entering that hotel on two separate occasions. Eventually, agents knocked on the doors of both hotels and asked for consent from the occupants.
The jury heard and was provided evidence that Villegas had rented the room at America’s Best Value hotel which was found to hold seven El Salvadoran nationals and one Honduran national. Co-defendant Rodolfo Castaneda rented the Gateway Inn hotel room which held 13 El Salvadoran nationals.
At trial, the United States presented testimony from numerous HSI agents, the undocumented aliens as well as local hotel owners. The government also provided evidence of vehicle registration information connecting Villegas to multiple vehicles used in this conspiracy.
Castaneda previously pleaded guilty and is awaiting sentencing.
U.S. Senior District Judge Janis Graham Jack presided over trial and sentencing will be set at a later date.
HSI conducted the investigation. Assistant U.S. Attorneys Jorge Vela and Sanjeev Bhasker prosecuted the case.
Traveler Heads to Prison for Importing Cocaine from MexicoRead the Press Release
LAREDO, Texas– Ruben Judas Ruiz-Vazquez, 42, a legal permanent resident from Mexico, has been ordered to prison for conspiracy/importation/possession with the intent to distribute cocaine, announced U.S. Attorney Kenneth Magidson. Ruiz-Vazquez pleaded guilty Oct. 21, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo handed Ruiz-Vazquez a sentence of 70 months in federal prison. He is expected to face deportation proceedings following his release from prison.
On July 28, 2014, Ruiz-Vazquez attempted to enter the United States from Mexico by crossing the Lincoln Juarez International Bridge (POE #2) in Laredo. He was driving a 2007 Jeep Compass vehicle which a drug canine alerted to contain contraband.
Customs and Border Protection (CBP) agents conducted an x-ray examination of the vehicle and discovered 18 bundles of cocaine weighing 18.24 kilograms within the vehicle’s undercarriage. Homeland Security Investigation (HSI) agents were notified for further investigation.
Ruiz-Vazquez initially denied knowledge of the drugs and claimed he was traveling in a work vehicle. Agents contacted his employer in Wisconsin who indicated he did not have permission to travel into the United States for work.
Ruiz-Vazquez later wrote a letter to his employers from jail, apologizing for his conduct.
The charges are the result of an investigation HSI and CBP. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Brownsville Man Ordered to Prison in Money Laundering ConspiracyRead the Press Release
BROWNSVILLE, Texas – Oscar J. Aguilar, 38, a Mexican citizen legally residing in Brownsville, has been sentenced to 14 years in federal prison for conspiring to commit international money laundering, announced United States Attorney Kenneth Magidson along with Janice Ayala, special agent in charge of Homeland Security Investigations (HSI) in San Antonio. Aguilar pleaded guilty May 16, 2014.
Today, U.S. District Judge Andrew S. Hanen, handed Aguilar the 168-month sentence. He was further ordered to pay a $1,893,170 money judgment which represented the proceeds of drug smuggling that were laundered in the scheme. He is expected to face deportation proceedings following his release from prison.
“HSI special agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organizations,” said Ayala. “These investigations deprive the organizations from enjoying the fruits of their illicit crimes while preventing them from furthering the ongoing criminal enterprise. HSI will continue to aggressively investigate schemes that jeopardize the integrity of our financial system.”
Aguilar admitted to recruiting nine others, some of whom were family members, to open bank accounts at Bank of America in Brownsville. Later, co-conspirators in Florida would deposit money from narcotics sales into the accounts. Aguilar’s recruits withdrew the money in amounts under the $10,000 reporting requirement and would give that money to Aguilar or other co-conspirators. The recruits were paid for moving the money through their bank accounts.
After Aguilar received the money, he facilitated its crossing from Brownsville to Matamoros, Mexico, where it was delivered to the Gulf Cartel.
From September 2008 through November 2012, the conspirators moved approximately $1,893,170 through nine bank accounts, with nearly $1.5 million from September 2011 through November 2012 alone.
Nine others have been convicted in relation to this case. With the exception of Francisco Jesus Arambul-Cortez, who also pleaded to conspiracy to commit International money laundering, the eight others entered guilty pleas to operating an unlicensed money transmitting business.
Aguilar will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorneys Karen Betancourt and Joseph Leonard.
Local Tax Preparer Charged with False Tax Return PreparationRead the Press Release
HOUSTON – A Houston federal grand jury has returned an indictment charging Doyle J. Blevins Jr., of Willis, with 27 counts of preparing false client tax returns, announced United States Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation.
“Those who might consider preparing false tax returns this filing season should be aware of the consequences of their actions,” said Cruz. “This indictment emphasizes that the Internal Revenue Service and U.S. Attorney’s Office will continue their aggressive pursuit of those who attempt to defraud America's tax system. Taxpayers should also be very cautious when selecting someone to prepare their returns because ultimately they are responsible for what gets filed with the IRS.”
The indictment was returned Jan. 21, 2015. Blevins surrendered to authorities this morning and will make his initial appearance before U.S. Magistrate Judge George C. Hanks at 2:00 p.m. today.
According to the indictment, Blevins operated a tax return preparation business in Willis under the name Total Refund Tax Service. The indictment alleges he prepared dozens of materially false client tax returns during calendar years 2008 through 2010. The indictment also alleges he included in these tax return bogus “side business” losses in order to generate excessive refunds totaling approximately $285,000.
If convicted, Blevins faces up to three years in federal prison and a possible $250,000 fine on each count.
The case, investigated by IRS-CI, is being prosecuted by Assistant United States Attorney Jimmy Sledge Jr.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Lake Jackson Man Gets Five Years for Distributing Child PornographyRead the Press Release
HOUSTON – Lake Jackson resident Bradley Beckerdite, 25, has been sentenced to federal prison following his convictions for distribution and possession of child pornography, United States Kenneth Magidson announced today. Beckerdite pleaded guilty May 12, 2014.
Today, U.S. District Judge Lynn Hughes, who accepted the guilty plea, handed Beckerdite a term of imprisonment of 60 months. He was further ordered to serve five years of supervised release following completion of that term. Beckerdite must also register as a sex offender.
Beckerdite was indicted on April 24, 2013, following an investigation conducted by the Houston FBI Child Exploitation Task Force. That investigation revealed that Beckerdite was making child pornography available to others through the use of peer-to-peer software over the Internet. A special agent downloaded an image of child pornography from the images/videos Beckerdite was making available online. The images included children under the age of 12 being sexually violated by adults and children under the age of 12 in positions which caused their genitalia to be displayed in a lewd/lascivious manner. Bondage involving children was also present on the defendant’s computer.
Law enforcement executed a search warrant on Sept. 6, 2012, at the home of a third party. Beckerdite used the Internet connection at that residence to receive and distribute child pornography in an attempt to avoid detection. The examination of the computer media ultimately obtained from Beckerdite revealed more than 11,000 digital images and approximately 145 videos which contained child pornography.This case, prosecuted by Assistant U.S. Attorney Sherri L. Zack, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Illegal Alien Sentenced for Firearms OffenseRead the Press Release
McALLEN, Texas – Emilio Padilla, 24, of Taumalipas, Mexico, two counts of being an illegal alien in possession of a firearm, announced U.S. Attorney Kenneth Magidson. A federal jury sitting in McAllen convicted Padilla on Oct. 24, 2014, following a two-day trial and less than an hour of deliberation.
Today, Senior U.S. District Judge Randy Crane, who presided over the trial, handed Padilla a sentence of 21 months in federal prison. At the hearing, the defense contended that Padilla had possessed the firearms to protect his family. As an illegal alien, Padilla is expected to face deportation proceedings following his release from prison.
During trial, the jury heard the testimony of several law enforcement officers who stated they had met with Padilla at his residence in Alamo on April 29, 2014. At that time, he admitted to having several firearms, including two Glock 9mm pistols. Padilla was in the United States illegally and not permitted to possess firearms.
Agents conducted a search of the residence and discovered the weapons, which were manufactured in Austria and had traveled in interstate and foreign commerce.
Padilla’s brother, Mariano Padilla, pled guilty to the same offense on June 6, 2014, and was sentenced to 18 months in federal prison by Judge Randy Crane on Oct. 22, 2014.
Padilla will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Homeland Security Investigations and the San Juan Police Department. Assistant U.S. Attorneys Leo J. Leo III and David A. Lindenmuth prosecuted the case.
Houston Man Convicted of Using Counterfeit Cards in Nearly 400 Transactions at Sam’s ClubRead the Press Release
HOUSTON – Guang Fa Lin, 47, has entered a guilty plea to one count of using counterfeit access devices, announced United States Attorney Kenneth Magidson. Lin resided in Houston but has no legal status in the U.S.
During his plea hearing today, Lin admitted that between 2012 and 2013, he used counterfeit credit cards, debit cards and credit and debit account numbers to obtain goods, services and other things of value.
According to the factual basis in the plea agreement filed in the case, Lin used scores of credit and debit cards in approximately 395 transactions under various Sam’s Club Memberships bearing different identifying information to purchase items such as cigarettes, iPads, gum and gift cards.
The counterfeit cards bore account numbers banks and other financial institutions issued to account holders, many of whom reside outside of Texas. As a result, Lin caused more than $200,000 in losses.
The plea agreement requires Lin to make full restitution.
U.S. District Court Judge Sim Lake, who accepted the guilty plea, has set sentencing for April 17, 2015. At that time, Lin faces up to 10 years in prison and a $250,000 fine. He will remain in custody pending that hearing.
The charges are the result of an investigation by U.S. Secret Service. Assistant U.S. Attorney Stephen L. Corso is prosecuting the case.
Alien Smuggler Who Assaulted Border Patrol Agent Heads to PrisonRead the Press Release
LAREDO, Texas – Jose Luis Zavala-Rodriguez, 23, an undocumented Mexican alien, has been ordered to federal prison for assaulting a Border Patrol agent and transporting undocumented aliens, announced U.S. Attorney Kenneth Magidson. Zavala-Rodriguez was found guilty on four counts relating to assaulting a federal agent and alien transporting offenses in federal court on July 25, 2014.
Today, U.S. District Judge Marina Garcia Marmolejo handed Zavala-Rodriguez a total of 80 months in federal prison. At the hearing, evidence and testimony from the jury trial was discussed including the agent’s injuries and fear during the attack orchestrated by the defendant. The court also heard about injuries to another alien and the testimony of a minor who identified Zavala-Rodriguez as the instigator of the assault on the agent and attempt to remove the agent’s handgun and TASER. In handing down the sentence, Judge Marmolejo noted the defendant’s behavior could have led to the serious injury or death of the Border Patrol agent or any of the aliens. The defendant objected to the lengthy sentence, but the court noted that he should not have attacked an armed Border Patrol agent. As an illegal alien, Zavala-Rodriguez is expected to face deportation proceedings following his release from prison.
On Oct, 23, 2013, at approximately 2:00am, a Border Patrol (BP) agent was pursuing a large group of undocumented aliens through large underground drainage tunnels. These tunnels are generally used by aliens and their guides to move secretly and away from public view.
The agent made his way to the drainage tunnel’s opening and saw legs of several persons hiding behind trees next to a building. He approached the group and instructed them in English and Spanish to not move and sit down. One of these persons - Zavala-Rodriguez - put his hands in the air and walked towards the agent telling him not to worry, at which time the agent continued to command Zavala-Rodriguez to stop.
Zavala-Rodriguez then lunged at the agent and took him to the ground. Zavala-Rodriguez then yelled in Spanish “Todos peganle,” meaning “Everyone hit him.” On the ground, the agent was surrounded and hit and kicked simultaneously by several persons. Zavala-Rodriguez was able to remove the agent’s service issued Taser.
As the agent pushed himself up from the ground, he then felt someone trying to extract his duty weapon. The agent then discharged his pistol twice and the group scattered. Other agents arrived almost simultaneous to the second shot and arrested Zavala-Rodriguez as well as other undocumented aliens.
The agent was hospitalized and diagnosed with trauma to the neck and other injuries. Zavala-Rodriguez received medical attention for his injuries and was released from the hospital and into federal custody.
Zavala-Rodriguez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The matter was investigated by the FBI with the assistance of BP and the Laredo Police Department. Assistant United States Attorney Christopher Coker and Homero Ramirez prosecuted the case.
Man Sentenced for Preparing False Income Tax ReturnRead the Press Release
HOUSTON – Income tax return preparer Simon Makangula has been ordered to prison for willfully aiding and assisting in the preparation of a false income tax return for a client, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI). Makangula pleaded guilty Oct. 15, 2014.
Today, U.S. District Judge Gray H. Miller sentenced ordered Makanagula to serve 18 months in federal prison and must pay $51,645.00 in restitution to the IRS.
Makangula was convicted of assisting in the preparation of one false U.S. Individual Income Tax Return. According to the plea agreement filed in the record of the case, Makangula admitted that the return contained two false dependents, a false refundable education credit, a false earned income credit and a false Schedule C loss from a sole proprietorship that the taxpayer did not have. Makangula admitted that the tax loss on the return in question was approximately $9,731.
This matter was investigated by IRS-CI and is being prosecuted by Assistant U.S. Attorney Charles J. Escher.Mexican Man Gets 15 Years for Transporting Illegal Aliens Resulting in DeathRead the Press Release
McALLEN, Texas – Eduardo Moreno-Gonzalez, 22, a Mexican citizen illegally present in the U.S., has been ordered to federal prison following his conviction of transporting illegal aliens that resulted in the death of one of the aliens, announced U.S. Attorney Kenneth Magidson. Moreno-Gonzalez pleaded guilty Oct. 3, 2014.
At time of this offense, Moreno-Gonzalez was on supervised release for a previous conviction in another alien-transporting case in which he was driving the vehicle and lost control, resulting in a rollover. Today, U.S. District Judge Randy Crane revoked that supervised release as part of his 180-month sentence in this case. He is expected to face deportation proceedings following his prison sentence.
On April 2, 2014, Border Patrol (BP) agents observed a group of vehicles the agents suspected to be involved in illegal activity near San Isidro. Agents investigate further and observed the vehicles turn off onto a dirt and gravel road. When agents approached, they saw dust and dirt in the air and later saw taillights spinning in the dust. Upon arrival, they encountered Moreno-Gonzalez trapped under the vehicle he was driving, which had lost control and flipped. Moreno-Gonzalez was transporting 21 illegal aliens. In the crash, one of the aliens was ejected from the vehicle and died as a result.
Moreno-Gonzalez has been in federal custody since his arrest where he will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
Homeland Security Investigations and BP investigated the case, which was prosecuted by Assistant U.S. Attorney (AUSA) Joseph Leonard and former AUSA Grady J. Leupold.
Jury Convicts Another in Large-Scale Drug-Trafficking ConspiracyRead the Press Release
CORPUS CHRISTI, Texas – A federal jury in Corpus Christi has convicted Rodolfo Casares, 38, of Brownsville, on one count of conspiracy to commit drug trafficking, and two counts of possession with intent to distribute controlled substances - methamphetamine and cocaine, respectively, announced U.S. Attorney Kenneth Magidson. The jury deliberated for two hours and returned the guilty verdicts just moments ago following a two-day trial.
The jury heard from 10 government witnesses, which included testimony that Casares supplied heroin, methamphetamine and cocaine to a major drug trafficking organization headquartered in Mathis and lead by Ricardo Guerrero, 56, of Mathis. On March 18, 2014, Guerrero was convicted by a federal jury in Corpus Christi for being the leader of this conspiracy and was subsequently sentenced to life imprisonment on June 5, 2014.
Casares was involved in the conspiracy from 2009 through most of 2012 and utilized his connections in Mexico to obtain the illegal narcotics and had them crossed into the United States at Brownsville, McAllen or Laredo. Once here, the illegal narcotics were then transported to Guerrero and stored in numerous properties Guerrero owned in Mathis and in neighboring counties.
Guerrero then made the arrangements to sell the heroin, methamphetamine and cocaine throughout the Southern District of Texas and in San Antonio. On Aug. 20, 2011, three conspirators that Casares had hired were arrested at the U.S. Border Patrol Checkpoint at Hebbronville while attempting to transport methamphetamine and cocaine to Guerrero.
Trial testimony also provided that Guerrero’s criminal organization was moving kilogram amounts of methamphetamine, heroin and cocaine at least once or twice a month during the conspiracy.
U.S. District Judge Nelva Gonzales Ramos presided over the trial and has set sentencing for May 15, 2015. At that time, Casares faces a mandatory minimum of 10 years and up to life in federal prison as well as a possible $10 million maximum fine.
Those charged in relation to this case were identified through a long-term investigation conducted jointly by Homeland Security Investigations and Texas Department of Public Safety in coordination with the United States Attorney’s Office. Assistant U.S. Attorney Chad W. Cowan is prosecuting the case.
Co-defendants Get Significant Sentences for Multiple Child Pornography ConvictionsRead the Press Release
HOUSTON – William Craig Noonan, of Houston, 39, and David Morse Barry, formerly of Wichita Falls, 55, have been ordered to federal prison for 30 and 27 years, respectively, following their multiple convictions including conspiracy to produce child pornography involving two prepubescent children, announced U.S. Attorney Kenneth Magidson
Today, U.S. District Judge Lee H. Rosenthal, handed Noonan a sentence of 360 months for each of the two counts of conspiracy to produce and one count of distribution of child pornography as well as 120 months for possession of child pornography. The sentences will be served concurrently for a total 30-year federal sentence. Barry will serve a total of 324 months for his convictions. Both Noonan and Barry will be on supervised release for life following completions of their prison terms.
Noonan, a registered sex offender, pleaded guilty March 26, 2014, while Barry proceeded to trial in May 2014. Following the five-day bench trial, Judge Rosenthal found him guilty on two counts of conspiracy to produce and two counts of production of child pornography.
Both have been in custody where they will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case, investigated by the Homeland Security Investigations and prosecuted by Assistant U.S. Attorney Sherri L. Zack and Bob Stabe, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
10-Year Sentence for Undocumented Alien for Conspiracy to Transport and Harbor Other AliensRead the Press Release
BROWNSVILLE, Texas - Raul Ramirez-Martinez, 36, an undocumented alien from Queretaro, Mexico, has been sentenced on a multi-count indictment charging conspiracy to transport and harbor aliens and illegal re-entry after removal/deportation, announced U.S. Attorney Kenneth Magidson. Ramirez-Martinez, a previously deported illegal alien, pleaded guilty in May 2014.
Today, U.S. District Judge Andrew S. Hanen handed him a sentence of 120 months on each of the charges, to be served concurrently. At the hearing, the government presented evidence that Ramirez-Martinez, who had a prior alien smuggling conviction in 2006, was the leader of the smuggling organization. He is expected to face deportation proceedings following his release from prison.
The charges arose following the discovery of 72 illegal aliens at a stash house in Brownsville.
Co-defendant Rodrigo Gonzalez-Alvarez, 22, went to trial in June 2014. At that trial, agents with the Fraud, Intelligence, Smuggling and Terrorism Unit (FIST), Homeland Security Investigations (HSI) and U.S. Border Patrol, testified that on March 27, 2014, they learned a group of suspected illegal aliens were being harbored at a residence on Coral Court in Brownsville. The investigated and discovered a total of 72 individuals, all undocumented aliens from different countries - Guatemala, Bolivia, Honduras and El Salvador.
At that time, agents also recovered a cell phone which they used to call other conspirators saying they had escaped the stash house as it was raided by immigration agents. As a result, Ramirez-Martinez and other alien smugglers were arrested as they attempted to pick up the “aliens” who had run from the house.
Further investigation ultimately led agents to a trailer in Olmito where they arrested Gonzalez-Alvarez and others. Testimony at trial included the recovery of “ledgers” with names of smuggled aliens, some who had already transported north. Aliens held at the house testified they were initially kept at the trailer in cramped, standing-room only conditions before being taken to the stash house.
Further testimony revealed Ramirez-Martinez was in charge of the alien smuggling organization. The illegal aliens, who paid up to $4,000 each, were turned over to him for harboring and transportation north.
In addition to Ramirez-Martinez, those arrested and already sentenced include Claudia Cerda-Lucio who received a 34-month prison sentence; Gonzalez-Alvarez - 60 months; Rafael Hernandez - five years probation; Miguel Pucheta-Malaga - 24 months; and Rafael de la Cruz-Bautista - 46 months. With the exception of Gonzalez-Alvarez, all pleaded guilty.
Ramirez-Martinez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
This case was investigated by agents of the FIST unit, HSI and U.S. Border Patrol and prosecuted by Assistant U.S. Attorney Oscar Ponce.
Local Man Heads to Prison for Ramming Border Patrol Vehicle While Transporting MarijuanaRead the Press Release
MCALLEN, Texas – A Rio Grande City man is now serving a significant sentence for possessing with the intent to distribute marijuana, announced U.S. Attorney Kenneth Magidson today. Issac Medina, 29, of Rio Grande City, pleaded guilty June 26, 2014.
Today, U.S. District Judge Randy Cane sentenced Medina to 135 months of federal imprisonment to be immediately followed by a four-year-term of supervised release.
On March 14, 2014, Border Patrol (BP) agents observed Medina drive his vehicle down to the Rio Grande River where it was loaded with 34 large bundles that later tested positive for marijuana. Medina then headed north at a high rate of speed. A BP agent attempted to intercept the defendant and pulled onto a road where the agent observed Medina’s vehicle come to rest. Medina began to exit but then accelerated his vehicle forward striking the agent’s vehicle head-on.
The agent, hearing Medina accelerating his engine, feared being pushed into the roadway and discharged his service weapon. At that time, Medina surrendered and was taken into custody.
Judge Crane enhanced Medina’s sentence for use of a deadly weapon (the motor vehicle), use of violence against the agent and acting in a manner creating substantial risk of serious bodily injury.
Medina has been and will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the Drug Enforcement Administration, FBI, Border Patrol and the Pharr Police Department.
Assistant U.S. Attorney (AUSA) Steven Schammel and former AUSA Juan Villescas prosecuted the case.
Former Title Company Employee Heads to Prison in Bank Fraud ConspiracyRead the Press Release
HOUSTON – Harris County resident Maria Eliza Garza has been ordered to prison following her conviction in conspiring to defraud seven different Houston-area banks or more than $2 million in 2007 and 2008, announced United States Attorney Kenneth Magidson. Garza pleaded guilty Sept. 4, 2013.
Today, U.S. District Judge Lee H. Rosenthal, who accepted the guilty plea, handed Garza an 18-month sentence to be followed by three years of supervised release. At the hearing, the court noted that Garza was an important player in the scheme and further ordered her to pay $2.078 million in restitution.
As outlined in documents filed with the court and admitted by Garza during her guilty plea, she and a co-conspirator agreed to carry out a check kiting scheme that targeted seven different financial institutions in the Houston area. While the co-conspirator allegedly devised the scheme which used multiple bank accounts held in the name of title companies he controlled, Garza admitted she assisted by discussing which bank accounts needed money, preparing checks to sign and depositing signed checks at the banks.
Garza, of Houston, admitted as part of her plea that she helped carry out the scheme from at least January 2007 through June 2008. To do so, Garza prepared checks drawn on the title companies’ accounts. The co-conspirator signed the checks and both knew the accounts lacked sufficient funds to cover the checks. Garza deposited the checks into other accounts controlled by the co-conspirator, which artificially inflated the account balances. They would then write additional checks using the artificially inflated balances and deposit them into either the original issuing account or other accounts controlled by the co-conspirator.
Garza also admitted she and conducted the scheme to artificially inflate the account balances and place the funds at her co-conspirator’s disposal to use as interest-free loans and lines of credit. They continued to carry out the scheme even after three of the banks discovered the kiting activity and shut down the relevant accounts. When the scheme finally collapsed in June 2008, the total loss to the affected banks was $2,099,65.72.
Garza was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI with assistance from the Harris County District Attorney’s Office and police departments in Webster and Friendswood. Assistant U.S. Attorney John Pearson is prosecuting the case.
Federal Agent Pleads Guilty in Insurance Fraud SchemeRead the Press Release
McALLEN, Texas - Reynaldo Gonzalez, 38, has pleaded guilty to wire fraud, announced United States Attorney Kenneth Magidson. Gonzalez is a deputy U.S. Marshal in San Antonio who was previously assigned to the Southern District of Texas. He is currently on administrative leave.
Gonzalez was charged in April 2014. He was set to begin trial next week, but opted to plead guilty today.
Gonzalez purchased an accident-only insurance plan from the American Family Life Assurance Company (Aflac) in May 2005. The plan is commonly known as supplemental insurance and is designed to mitigate expenses incurred by policyholders during injuries that are not otherwise covered by major medical insurance.
As part of his plea, Gonzalez admitted that on or about March 24, 2009, he faxed a claim form containing false and fraudulent information to Aflac headquarters in Columbus, Ga., indicating he had been examined by a physician for ankle pain four days prior. To accomplish the fraud, Gonzalez used a physician’s signature and tax identification number without the physician’s knowledge or consent.
Gonzalez admitted that he was not, in fact, seen by this physician on that date. Further, the last time he was examined by this physician was actually in October 2007.
U.S. District Judge Micaela Alvarez, who accepted the plea today, has set sentencing for April 23, 2015, at which time he faces up to 20 years of federal imprisonment and a possible $250,000 maximum fine. He was permitted to remain on bond pending that hearing.
The investigation was conducted by the FBI with assistance from the Office of the Inspector General. Assistant United States Attorneys Linda Requénez and Michael Day are prosecuting the case.
Former Houston Banker Heads to Prison for Bank FraudRead the Press Release
HOUSTON – Carlos Lavin Ibarra, 34, of Houston, has been sentenced to federal prison following his conviction on one count of bank fraud, announced United States Attorney Kenneth Magidson. Ibarra pleaded guilty July 9, 2014.
Today, U.S. District Judge Nancy Atlas, who accepted the guilty plea, stated that the idea that a banker takes money out of someone else's account without authority must be sanctioned and handed Ibarra a sentence of 33 months in federal prison to be immediately followed by five years of supervised release. Defendant was not ordered to pay a fine. He was further ordered to pay $779,000 in restitution.
Ibarra worked at JP Morgan Chase Bank in Houston. He admitted that while employed there, he purchased or caused to be purchased $779,000 in cashier’s checks on accounts owned by a person from Nigeria. This person was deceased at the time of the defendant’s actions and Chase was not advised of his death. The defendant admitted he acted fraudulently and without authority.
The cashier’s checks were all made payable to “Ben Leasing.” Ibarra admitted he caused another individual to obtain a certificate of operation under the assumed name of Ben Leasing from the County Clerk of Harris County and open a bank account in that name. However, that person refused to accept the cashier’s checks and Ibarra then re-deposited the checks at Chase. He further caused eight more cashier’s checks to be purchased in various amounts, payable to different individuals with whom Ibarra had a relationship. Three of these checks were subsequently exchanged for identical Chase cashier’s checks. All of the Chase cashier’s checks were deposited into different bank accounts in Houston.Ibarra was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The case was investigated by the Secret Service and is being prosecuted by Assistant U.S. AttorneyEx-CEO of McAllen-Based Trucking Company Convicted in $26 Million Fraud SchemeRead the Press Release
HOUSTON – Sergio Lagos, 45, has been convicted of conspiracy to commit wire fraud and six counts of wire fraud, announced U.S. Attorney Kenneth Magidson. Lagos was the former CEO of USA Dry Van Logistics (USADV), a cross-border trucking company that services the maquiladora industry. Aurelio “Jim” Aleman and Oscar Barbosa, former chief operations officer and former controller for the company, respectively, previously pleaded guilty to conspiracy to commit wire fraud on Sept. 16, 2013.
According to records, Aleman and Lagos entered into a financing agreement with GE Capital Corporation (GECC) under which GECC would issue a revolving line of credit which was secured by USADV’s accounts receivables. By January 2010, the maximum borrowing limit under the agreement was increased to $38 million. Pursuant to the agreement, USADV justified advances on the line of credit by submitting “borrowing base certificates” to GECC.
Lagos admitted that from March 2008 through the end of January 2010, he joined in a scheme to defraud and swindle GECC, a lending company that provided capital to USADV, fraudulently obtaining funds through a revolving line of credit. At the plea hearing, Lagos admitted he schemed to conceal from GECC the truth about USADV’s declining operating performance and financial results. Rather than reveal USADV’s true condition, Lagos and his co-defendants misrepresented USADV’s true operating performance and financial results to include the nature of the USADV’s accounts receivable, against which GECC was permitting USADV to borrow hundreds of thousands of dollars on a weekly basis. This caused USADV to appear to be operating more profitably that it actually was.
Lagos signed, prepared and/or directed others to prepare certificates that falsely inflated the amount of the company’s accounts receivables and caused them to be submitted to GECC to enable USADV to obtain more funds than would otherwise have been permitted. Lagos perpetuated and concealed the scheme to defraud GECC by directing other employees to manually invoice millions of dollars of fraudulent receivables to inflate the borrowing base and to create false and forged invoices and support documentation for accounts receivables that did not exist. Lagos also admitted to submitting false financial statements to auditors and GECC.
When the truth about USADV’s operations and finances were revealed, USADV went into bankruptcy. USADV successfully re-organized under Chapter 11 bankruptcy proceedings and is currently operating with new owners. Lagos, Aleman and Barbosa are no longer affiliated with or employed by the company.
The government alleges the estimated loss to GECC is more than $26 million. U.S. District Judge Kenneth M. Hoyt, who accepted the guilty plea today, will make a final determination of that loss at the time Lagos is sentenced. At that time, he also faces up 20 years in federal prison and a possible $250,000 fine. The hearing has been scheduled for April 13, 2015.
The investigation was conducted by Homeland Security Investigations and the FBI. Assistant U.S. Attorneys Casey N. MacDonald and Grady J. Leupold are prosecuting the case.
Cocaine Importing Conspiracy Lands Mexican National Five-Year Prison TermRead the Press Release
McALLEN, Texas - Mexican national Ricardo Garza-Ramirez, 55, has been ordered to prison for five years following his conviction of conspiracy to import cocaine, announced U.S. Attorney Kenneth Magidson. Garza-Ramirez pleaded guilty Sept. 3, 2014, on the day he was set to begin trial.
Today, U.S. District Judge Micaela Alvarez, who accepted the guilty plea, handed Garza-Ramirez a total of 60 months in federal prison. A legal permanent resident, he is expected to face deportation proceedings following his release from prison.
On June 17, 2014, Garza-Ramirez drove a BMW 3Series loaded with 15 kilograms of cocaine from Mexico into the U.S. through the Pharr Port of Entry. Unknown men placed the BMW under Garza-Ramirez’s name and instructed him to cross the vehicle into the country. At the time of his arrest, Garza-Ramirez admitted to crossing the vehicle in this fashion approximately seven or eight times.
Although he denied initially knowing the vehicle contained drugs, at the time of his plea, Garza-Ramirez admitted he knew or at least suspected the vehicle was loaded with some type of controlled substance.
Garza-Ramirez will remain in custody will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Customs and Border Protection and Homeland Security Investigations. Assistant U.S. Attorneys Kristen J. Rees and David A. Lindenmuth prosecuted the case.
Local Mechanic Charged with Possessing Child PornographyRead the Press Release
LAREDO, Texas – Gamaliel Cortez-Mendoza, 43, an illegal alien residing in Laredo, has been arrested and charged with possession of child pornography, announced U.S. Attorney Kenneth Magidson along with Homeland Security Investigations (HSI) Special Agent in Charge Janice Ayala in San Antonio and Webb County Sheriff Martin Cuellar. Cortez-Mendoza is a Mechanic at a local logistics company.
Cortez-Mendoza was arrested yesterday following an investigation by the Laredo Child Exploitation Task Force led by HSI and the Webb County Sheriff's Office Cyber Crime Unit with assistance from the Laredo Police Department, Texas Department of Public Safety and U.S. Marshals Service.He made his initial appearance this morning, at which time he was temporarily ordered into custody pending a preliminary examination and detention hearing set for Jan. 23, 2015, at 10:00 a.m. before U.S. Magistrate Judge Diana Song Quiroga.
“This arrest illustrates the value of having a task force dedicated to protecting the children of this community,” said Ayala. “The concept for this task force was inspired by the many successes resulting from the strong partnership between HSI and Webb County, a partnership which was initiated at the direction of Sheriff Martin Cuellar.”
“Operation Child Guardian has proven to be a great success,” said Cuellar. “Since its inception in 2009, more than 40 suspected child predators have been taken off the streets. We will continue to aggressively target those individuals who prey on our children."
The criminal complaint alleges Cortez-Mendoza utilized the Internet to download images depicting a minor engaging in sexually explicit conduct. Such images were allegedly downloaded multiple times over the past several months to a laptop computer that was seized from his possession.
If convicted, Cortez-Mendoza faces up to 20 years in federal prison and a possible $250,000 fine. Upon conviction, he will also be required to register as a sex offender.
This case, prosecuted by Assistant U.S. Attorney Alfredo De La Rosa, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Former Investor Relations Executive Sentenced to Prison for Insider TradingRead the Press Release
HOUSTON - Stephen B. Gray, 57, of Houston, has been sentenced to federal prison following his conviction for securities fraud in an insider trading scheme, announced U.S. Attorney Kenneth Magidson. Gray pleaded guilty Sept. 26, 2014.
Today, U.S. District Judge Melinda Harmon, who accepted Gray’s plea, handed Gray a sentence of 46 months in federal prison and ordered him to pay a $7,500 fine. Gray collected at least $326,159 as a result of his illegal activity. Judge Harmon ordered Gray to forfeit that amount as part of his sentence.
From at least September 2009 through at least May 2012, Gray engaged in an insider trading scheme to use and trade upon material non-public information he acquired during his employment at an investor relations firm based in Houston. Specifically, Gray, as CEO, had access to press releases and confidential information used to prepare the releases by the firm for its clients prior to their issuance to the investing public. The press releases contained material, non-public information about business events and announcements relating to the businesses of the firm’s clients.
In violation of firm policies and in breach of his duties to the firm and its clients, Gray traded in the firm stock of clients and engaged in trades in options of the stock of firm clients before announcement of material information by these companies via press releases by the firm. Gray obtained advance knowledge of material information that would be detailed in press releases issued by firm clients. He then traded while in possession of such material information before the information became public and profited on the movement in the stock price.
Without access to non-public information, trades in options, particularly short- term options, can carry significant risk because the trader is betting that the common stock underlying the options will increase significantly (if buying call options) or decrease significantly (if buying put options), prior to expiration. If the stock does not meet the target price by the expiration date, the options expire out of the money and the trader loses all of the money he paid to purchase the option. The shorter the term of the option, the riskier it is, because the common stock has less time to reach the target price.
Gray knew the prices of client stock were likely to increase or decrease after the information in client company announcements became public and that he would therefore be able to buy or sell his options for a profit.
Gray did not disclose his trades of client securities to the firm or its clients and used the material non-public information he acquired as part of his employment with the firm to make profitable trades and trades to avoid losses, in his personal brokerage account at TD Ameritrade.
Gray traded in firm client securities despite the firm’s written policies, which strictly prohibited firm employees from trading in any security issued by a firm client. Gray drafted these policies and was personally responsible for ensuring firm employees received and signed copies of each.
Gray, who had previously been released on bond, was permitted to remain on bond but ordered to voluntarily surrender either to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation leading up to the arrest was conducted by the Houston office of the FBI with valuable assistance from the Securities Exchange Commission in Fort Worth. Assistant U.S. Attorney Belinda Beek prosecuted the case.
Mexican National Convicted of Transporting Illegal AliensRead the Press Release
LAREDO, Texas – A federal jury has convicted Jaime Gerardo Serrano-Villegas, 28, of Nuevo Laredo, Mexico, of transporting illegal aliens, announced U.S. Attorney Kenneth Magidson. The verdict was returned following a two-day trial and less than two hours of deliberation.
According to testimony, Serrano-Villegas assisted other persons in moving a boat filled with Mexican Nationals across the Rio Grande River, towards Rio Bravo. Witnesses further described Serrano-Villegas acting as a guide and leading a group of six aliens into Rio Bravo. U.S. Border Patrol agents ultimately discovered seven Mexican Nationals who were subsequently detained. Evidence and testimony revealed that Serrano-Villegas admitted to Homeland Security Investigations (HSI) he had acted as a guide in order to make money for his daughter’s dental work.
Serrano-Villegas testified at trial and admitted to illegally entering the United States. However, he denied making any admissions to HSI, acting as a guide or having any involvement in the transportation of undocumented aliens into and through the U.S.
The jury did not believe his claims and found him guilty as charged.
Sentencing will be set at a later date. At that time, Serrano-Villegas faces up to 10 years in federal prison. He will remain in custody pending that hearing.
Homeland Security Investigations conducted the investigation with the assistance of U.S. Border Patrol. Assistant U.S. Attorney Christopher A. dos Santos is prosecutingthe case.
Houston Woman Sentenced for Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has been ordered to federal prison following her convictions of mail and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced U.S. Attorney Kenneth Magidson. She pleaded guilty Aug. 11, 2014.
Today, U.S. District Judge Lynn N. Hughes, who accepted the guilty plea, upwardly departed and handed Gary a sentence of 69 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Judge Hughes questioned Gary extensively about her criminal history and stated that the defendant had been involved in a widespread spree of stealing other people’s money. The court has also entered an order imposing restitution in the amount of $79,201.89.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
Previously released on bond, Gary was permitted to remain on bond but ordered to voluntarily surrender either to a designated U.S. Bureau of Prisons facility or to the U.S. Marshals Service on Feb. 3, 2015.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant U.S. Attorney John Braddock is prosecuting.
Corporation Owner/CEO Sentenced to Statutory Maximum for Federal Income Tax FraudRead the Press Release
HOUSTON - Robert Earl Carter, 65, a resident of Fresno and the former owner/CEO of Enterprise Advisory Services Inc. (EASI), has been ordered to federal prison as a result of being convicted for making false statements in a federal income tax return, announced U.S. Attorney Kenneth Magidson. Carter pleaded guilty Sept. 9, 2014.
Today, U.S. District Judge Keith P. Ellison, who accepted the guilty plea, handed Carter the statutory maximum of 36 months in federal prison to be immediately followed by a year of supervised release. At the hearing, additional evidence was presented including testimony from a Texas Southern University (TSU) representative who informed the court TSU had never received the half-million-dollar African Art donation Carter reported in his 2005 federal income tax return. Carter had also claimed the art, via carryover charitable donation deductions, in his 2007 to 2010 tax returns. He was further ordered to pay a $75,000 fine. In handing down the sentence, Judge Ellison concluded Carter had not accepted responsibility for his criminal conduct and found his sworn assertion regarding the art not credible.
At the time of his plea, Carter admitted he willfully made a materially false statement in his 2009 personal federal income tax return by under reporting the total income he earned that year. Carter reported a total income of $276,270, failing to disclose an additional $309,821 in bonus income he received during that year. The investigation established that he had those bonus monies converted into a check payable directly to another company controlled by a family member. Approximately one month later, $286,821 was returned directly to Carter via a cashier's check.
EASI also issued Carter another bonus check for $195,000 on Dec. 22, 2009, which he deposited into his personal savings account. EASI reported this $195,000 payment as executive variable pay (a financial incentive program recognizing the contribution employees make to EASI’s success). EASI did not report the income in Carter’s W-2 form or issue a form 1099-MISC because EASI recorded this bonus payment as a reimbursement payment to Carter.
Carter did not, as required, report this $195,000 personal income on his 2009 individual federal income tax return.
In sum, Carter willfully and intentionally failed to report personal income totaling $504,821 on his 2009 tax return.
Previously released on bond, Carter was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by Internal Revenue Service – Criminal Investigation and NASA - Office of Inspector General. Assistant U.S. Attorney Daniel C. Rodriguez is prosecuting.
Houston Woman Sentenced for Defrauding Charity Organization of More Than $65KRead the Press Release
HOUSTON – Simone Nicole Gary, 36, of Houston, has been ordered to federal prison following her convictions of mail and Social Security fraud in relation to the submission of fraudulent claims to the American Kidney Fund (AKF), announced U.S. Attorney Kenneth Magidson. She pleaded guilty Aug. 11, 2014.
Today, U.S. District Judge Lynn N. Hughes, who accepted the guilty plea, upwardly departed and handed Gary a sentence of 69 months in federal prison to be immediately followed by three years of supervised release. At the hearing, Judge Hughes questioned Gary extensively about her criminal history and stated that the defendant had been involved in a widespread spree of stealing other people’s money. The court has also entered an order imposing restitution in the amount of $79,201.89.
On July 15, 2010, Gary used the name and Social Security number of another person to obtain employment at Fresenius Medical Clinic (FMC) in Houston as a financial coordinator. As part of her duties, Gary assisted clients with their financial needs and verified insurance information.
FMC provides kidney dialysis to patients with kidney failure and is a longtime client of AKF, located in Rockville, Md. AKF awards financial grants to dialysis patients to obtain health care insurance. AKF has an online process which allows a dialysis clinic to submit a grant application on behalf of a patient.
While employed at FMC, Gary submitted fraudulent applications to AKF for grants to patients undergoing dialysis. As a result, AKF mailed grant checks payable to these patients to the attention of Gary at FMC in Houston. Gary took these checks, forged patient signatures and then deposited them into her own bank account.
As a result of the scheme, AKF suffered a loss of $65,768.78.
Previously released on bond, Gary was permitted to remain on bond but ordered to voluntarily surrender either to a designated U.S. Bureau of Prisons facility or to the U.S. Marshals Service on Feb. 3, 2015.
The case was investigated by the Secret Service and Social Security Administration - Office of Inspector General. Assistant U.S. Attorney John Braddock is prosecuting.
Doctor and Pharmacist Charged Distributing 1.6 Million Doses of OxycodoneRead the Press Release
HOUSTON – Richard Arthur Evans, M.D., 70, and David D. Devido, R.Ph., 76, both of Houston, have been charged in a 24-count indictment alleging a conspiracy to commit distribution of controlled substances, mail fraud, health care fraud and money laundering, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Joseph Arabit of the Drug Enforcement Administration (DEA) and Special Agent in Charge Lucy Cruz of Internal Revenue Service – Criminal Investigation (IRS-CI).
The indictment was returned under seal Wednesday, Jan. 7, 2015. Both men surrendered to federal authorities this morning at which time the indictment was unsealed.
Evans and Devido are charged with conspiring to distribute the prescription drugs oxycodone and hydrocodone, both highly addictive and highly abused pain relievers. Both drugs are semi-synthetic opiates which can be only acquired legally by prescription and dispensed by a pharmacist. As a physician, Evans wrote prescriptions and Devido dispensed the drugs, according to the indictment.
The indictment alleges both men distributed these drugs outside the course of professional practice and not for a legitimate medical purpose. Evans allegedly saw patients from Louisiana and other states, prescribed oxycodone products and directed patients to Briargrove Pharmacy in Houston. Devido had previously owned the pharmacy until it was sold recently.
The indictment further alleges Evans charged patients $200-$240 in cash for an initial office visit at which time the patient would obtain their first prescription. Refills are not permitted for these narcotics. Patients were allegedly told they could obtain a second prescription in 30 days without an office visit and a third in another 30 days as long as the patient sent a money order to Evans for $200-$240 on each occasion for “office visits.”
The indictment alleges Evans and his staff would deliver the prescription to Devido at Briargrove Pharmacy. Devido and his staff at Briargrove Pharmacy would allegedly send these drugs through the U.S. mail and FedEx to patients in Louisiana and other states.
The indictment alleges Evans prescribed and Devido dispensed approximately 1.6 million dosage units of oxycodone in a three-year-period.
Both defendants are charged with one count of conspiracy to distribute narcotics which carries a maximum penalty of five years in federal prison. They also face six counts of distribution of controlled substances and eight counts of mail fraud, all of which carry a possible 20-year-prison term. Devido is also charged with four counts of health care fraud and faces another 20 years for each conviction, while Evans faces five counts of money laundering, each carrying another 10 years of federal imprisonment. All charges also carry a possible $250,000 fine, upon conviction.
The investigation was conducted jointly by the DEA, IRS-CI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services and the Texas State Board of Pharmacy. Assistant U.S. Attorney Cedric L. Joubert is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Houston Man Sentenced for Aggravated Bank RobberyRead the Press Release
HOUSTON - Anthony Michael Shaffer, 30, has been ordered to federal prison following his convictions of bank robbery and brandishing a weapon during the course of the bank robbery, announced U.S. Attorney Kenneth Magidson. A jury found Shaffer guilty Oct. 15, 2014, following two days of trial and less than an hour of deliberation.
Today, U.S. District Judge Ewing Werlein Jr., who presided over the trial, handed Shaffer a sentence of 78 months for the bank robbery and a consecutive 84 months for the firearms offense for a total 162-month sentence. Shaffer was also ordered to pay restitution and a $1,000 fine and must serve a five-year-term of supervised release following completion of the prison term. In handing down the sentence, the court considered written statements submitted by the victim and upwardly departed from the U.S. Sentencing Guidelines, specifically noting that he was concerned Shaffer had committed these crimes only a short time after serving a 10-year sentence in state court also for aggravated bank robbery.
At trial, evidence proved Shaffer robbed the Woodforest National Bank inside a Pearland Walmart on Dec. 11, 2013. Two bank tellers testified Shaffer entered the bank alone, approached a teller and filled out a note demanding “loose billz.” The tellers also testified Shaffer used and brandished a 9 MM Smith and Wesson pistol during the course of the robbery.
Other witnesses also testified and identified Shaffer as the robber.
Law enforcement officers were able to obtain video footage of the robbery from both Walmart and Woodforest National Bank and testified that Shaffer’s fingerprints were also found on the demand note.
Shaffer will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The investigation was conducted by the FBI, Pearland Police Department and Brazoria County Sheriff’s Office. Assistant U.S. Attorneys Julie Searle and Douglas Davis prosecuted the case.
One Arrested and Another Convicted in Smuggling Organization Spanning from Brownsville to HoustonRead the Press Release
BROWNSVILLE, Texas – With the guilty plea today of Ruth Fernandez Morales-Lopez, 32, six people have now been convicted for their roles in an alien smuggling operation operating throughout South Texas, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Janice Ayala of Homeland Security Investigations (HSI) in San Antonio. The seventh and final defendant - Alfredo Prieto, 43, was arrested yesterday and made his initial appearance in Houston before U.S. Magistrate Judge Stephen Smith this morning. Prieto and Morales-Lopez are both illegal aliens who resided in Houston and Laguna Vista, respectively.
Morales-Lopez and Prieto were charged along with Abram Erasmo Rodriguez, 21, a U.S. citizen from Los Fresnos, Olegario Reyes-Bonola, 50, Esteban Castro-Molina, 40, Digma Salinas-De Rivera, 41, and Jose Antonio Marin-Sanchez, 43, in a 14-count indictment returned in Brownsville Dec. 11, 2014. All were charged for their roles in a conspiracy to transport undocumented aliens to stash houses in the Brownsville area, where they were concealed until being transported north to Houston.
Reyes-Bonola, Castro-Molina and Salinas-De Rivera, all illegal aliens who resided in San Benito, were arrested in San Benito at a stash house harboring 30 aliens on Nov. 19, 2014. All admitted they were responsible for concealing and harboring the aliens at the direction of Morales-Lopez. Marin-Sanchez, also an illegal alien himself who resided in Brownsville, was arrested the same day as he was transporting undocumented aliens to the San Benito stash house.
Further investigation into the organization revealed more than $1 million in smuggling fees being laundered through bank accounts and money services businesses.
“HSI special agents often investigate complex financial schemes in order to disrupt and dismantle the ongoing operations of transnational criminal organizations,” said Ayala. “These investigations deprive the organizations from enjoying the fruits of these illicit proceeds and prevent them from furthering the ongoing criminal enterprise. HSI will continue to aggressively investigate fraudulent financial schemes that jeopardize the integrity of our financial system.”
Morales-Lopez pleaded guilty to bringing in and harboring aliens and money laundering. She admitted she was the person who decided who could stay and who could go at the San Benito stash house based on whether they paid their smuggling fees. She further admitted $1,091,229.90 in her bank account was for alien smuggling fees and that she structured her withdrawals from that account to circumvent the Bank Secrecy Act.
Rodriguez previously pleaded guilty to conspiracy to bring into and transport certain aliens within the United States, admitting that from November 2013 through August 2014 he participated in the conspiracy. Specifically, he was instructed to pick up the aliens and transport them to the stash house. The plea agreement further indicates that he opened a bank account at the direction of Morales-Lopez. He then accepted cash deposits from families of the smuggled aliens as payment and turned it over to Morales-Lopez.
Castro-Molina, Reyes-Bonola, Salinas-De Rivera and Marin-Sanchez all pleaded guilty to bringing in and harboring certain aliens.
The six convicted are all set for sentencing on April 7, 2015, before U.S. District Judge Hilda G. Tagle. Morales-Lopez faces up to 10 years in federal prison for the smuggling charge and up to 20 years for money laundering. The remaining five each face up to 10 years of federal imprisonment.
The charges against Prieto are pending. He is presumed innocent unless and until convicted through due process of law.
HSI led the investigation with assistance from Border Patrol. Assistant U.S. Attorneys Ana Cano and Karen Betancourt are prosecuting the case.
High-Speed Chase Results in Extensive Prison for Alien TraffickerRead the Press Release
LAREDO, Texas - Felipe Pena, 40, of Laredo, has been ordered to prison for 67 months for transporting illegal aliens for profit, announced U.S. Attorney Kenneth Magidson. Pena pleaded guilty Aug. 27, 2014.
Pena was arrested at the Border Patrol (BP) Checkpoint on US 83 near the 35-mile marker for alien smuggling on Aug. 14, 2014. At that time, Pena had approached the checkpoint in a Ford F-150 vehicle where a BP canine alerted to the presence of humans inside his vehicle.
Pena then accelerated his vehicle and fled the scene, nearly injuring on-duty BP agents. Pena led authorities on a high-speed chase for three miles, reaching speeds of 90 miles per hour. Upon apprehension, agents discovered one female hiding behind the driver’s seat and one male hiding underneath a tool box. Both subjects were illegal aliens and citizens of Honduras and Mexico who had paid Pena for their transportation.
U.S. District Judge Marina Garcia Marmolejo previously accepted the plea and sentenced Pena to 67 months today, which included an upward variance for almost injuring the officers. The court further noted that Pena is a violent individual and should show respect to law enforcement and the United States of America.
BP, Homeland Security Investigations and FBI conducted the investigation. Assistant U.S. Attorney Sanjeev Bhasker is prosecuting the case.
Navasota Woman Sentenced to Prison for Identity TheftRead the Press Release
HOUSTON – Glenda Hamilton, 38, of Navasota, has been ordered to prison following her plea of guilty to aggravated identity theft, announced U.S. Attorney Kenneth Magidson.
Today, U.S. District Judge Keith P. Ellison, who accepted the plea, ordered Hamilton to serve 24 months in federal prison to be immediately followed by one year of supervised release.
At the time of her plea on Oct. 16, 2014, Hamilton admitted she fraudulently applied for income tax refunds using the stolen identities of others. Court records indicate she unlawfully acquired the name and Social Security numbers of others and used that information to file a fraudulent tax return on their behalf. Hamilton requested the refund checks be mailed to post office boxes under her control.
She then fraudulently endorsed the name of the victim onto the refund checks and used a counterfeit power of attorney to cash the checks.
Hamilton will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by Internal Revenue Service - Criminal Investigation and U.S. Postal Inspection Service. Assistant U.S. Attorney Jay Hileman he case is prosecuting the case.
Local Woman Arrested for Tax Refund FraudRead the Press Release
HOUSTON – Nicole Dette Perkins has been arrested on charges of making false claims for tax refunds in returns she prepared for other taxpayers and for falsifying her own tax returns, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service – Criminal Investigation (IRS-CI).
A federal grand jury returned the sealed 14-count indictment on Dec. 16, 2014. It was unsealed today upon her arrest. Perkins is expected made her initial appearance today before U.S. Magistrate Judge Stephen Smith at 2:00 p.m.
According to the indictment, Perkins prepared and filed tax returns on behalf of other tax payers for the 2009 tax year that claimed false refund amounts. The indictment further alleges she falsified her own tax returns for the years 2008 and 2009 by reporting false tax withholdings on fabricated W-2 Forms.
If convicted, Perkins faces up to five years in federal prison and a possible $250,000 fine for each of the 12 counts of making false claims for tax refunds. For each of the two counts of falsifying her own tax returns, she faces up to three years in prison and up to a $250,000 fine.
IRS-CI investigated the case. Assistant U.S. Attorney Stephen L. Corso is prosecuting.
A defendant is presumed innocent unless convicted through due process of law.Former CFO Heads to Prison for Failing to Pay Employment TaxesRead the Press Release
HOUSTON – Lanny C. McCandles has been ordered to federal prison after pleading guilty to failing to pay employment taxes, announced U.S. Attorney Kenneth Magidson along with Lucy Cruz, special agent in charge of Internal Revenue Service-Criminal Investigation (IRS-CI).
Today, U.S. District Judge Kenneth Hoyt, who accepted the guilty plea, handed McCandles an 18-month sentence to be immediately followed by three years of supervised release. At the hearing, additional evidence/testimony was presented indicating McCandles had prepared tax returns for several people and had defrauded them by, among other things, taking their refunds. He was further ordered to pay $262,791.28 in restitution.
At the time of his plea Sept. 2, 2014, McCandles admitted that between 2008 and 2011, he embezzled funds withheld from employee paychecks rather than paying them to the IRS as required. He also admitted to attaching fabricated and false IRS W-2 forms to his individual income tax returns as well as returns he prepared and filed on behalf of his girlfriend.
McCandles became the Chief Financial Officer (CFO) of the medical supply company Complete Care Medical Inc. (CCMI) in January 2007. As CFO, he was tasked with keeping CCMI’s books, handling its payroll and preparing and filing its corporate tax returns.
CCMI withheld appropriate federal income, Medicare and Social Security taxes from the paychecks of its approximately 30 employees pursuant to federal law. McCandles was responsible for depositing the withheld taxes to the IRS and filing an Employer’s Quarterly Tax Return (Form 941), which sets forth the total amount of wages and compensation subject to withholding, the total amount of Medicare and Social Security taxes due and the total tax deposits.
Beginning with the quarter ending in March 2008 and continuing through March 2010, McCandles did not deposit these taxes with the IRS nor did he file CCMI’s quarterly tax returns. Instead, he admitted he embezzled the funds CCMI withheld from employee paychecks and used them to pay personal expenses. To carry out and conceal his scheme, McCandles prepared a bi-weekly spreadsheet listing employee payroll expenses for the head of CCMI who then transferred funds to McCandles to cover employee paychecks and withholding. McCandles also prepared the quarterly tax returns and presented them for the signature of CCMI’s head. However, he never filed them.
McCandles admitted he stole the funds earmarked for CCMI’s employment taxes and spent them personally.
Specifically, McCandles pleaded guilty to willfully failing to truthfully account for and pay the IRS approximately $13,624.86 in federal income and FICA taxes withheld from taxable wages of CCMI employees for the first quarter of 2008.
Furthermore, as part of the plea agreement, McCandles admitted he fabricated W-2 Forms and attached them to his personal income tax returns for tax years 2007, 2008 and 2009, resulting in the receipt of refunds to which he was not entitled. For tax years 2007 - 2010, he also admitted to fabricating W-2 Forms and attaching them to tax returns he prepared and filed on behalf of his girlfriend.
McCandles was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by IRS-CI and the Treasury Inspector General for Tax Administration. Assistant U.S. Attorney Stephen L. Corso prosecuted the case.
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